Spanish Unions to Protest for Reduced Working Hours, Reports Reuters

By Belén Carreño

MADRID (Reuters) – Trade unions are set to lead protests across Spain on Thursday, aiming to urge an agreement between the government and the business sector regarding a reduction in working hours. Employers have expressed concerns about the potential rise in costs associated with this proposal.

The Socialists, led by Prime Minister Pedro Sanchez, are attempting to convince businesses to support a plan that would reduce the working week by 2.5 hours, from the current 40 hours. They argue that this change will enhance productivity.

Former European Central Bank chief Mario Draghi, in a recent report for the European Commission, noted the necessity for the European Union to close the productivity gap among member states to remain competitive with economic rivals like the United States and China.

To gain employer support, the government has proposed a hiring bonus for small businesses with fewer than 10 employees, aimed at offsetting the reduction in working hours while still providing the same level of service, as reported by a source involved in the negotiations.

Madrid has the authority to approve this reduction unilaterally, and a senior government source indicated that this could happen before the end of 2024.

The proposed plan would calculate the working week on an annual basis, allowing workers in sectors where adjusting shifts is challenging, such as hospitality, to accumulate hours that can later be compensated with holidays.

Spaniards currently work more hours than the majority of Europeans. According to Eurostat, the average working week in Spain was 36.4 hours in 2023, compared to the EU average of 36.1 hours.

Labour Minister Yolanda Diaz has stated that reducing working hours could lead to increased productivity, an area where Spain has historically fallen behind other European nations.

Business owners are worried that this proposal may result in employees working fewer hours for the same pay.

The consequences of similar initiatives in other countries remain uncertain. For example, France introduced a 35-hour work week in 2000 with the expectation of creating hundreds of thousands of jobs. However, data indicated that labor costs increased, making French workers more expensive compared to their counterparts and reducing competitiveness for companies.